Meta Platforms (NASDAQ:META) Trading Up 1.7% – Should You Buy?

Shares of Meta Platforms, Inc. (NASDAQ:META) rose 1.7% during mid-day trading on Thursday . The stock traded as high as $580.22 and last traded at $577.22. Approximately 27,378,969 shares changed hands during trading, an increase of 68% from the average session volume of 16,341,322 shares. The stock had previously closed at $567.58.

Meta Platforms News Roundup

Here are the key news stories impacting Meta Platforms this week:

• Positive Sentiment: Wall Street commentary remains constructive on Meta’s long-term AI strategy, with Evercore ISI’s Mark Mahaney naming META one of the best “Magnificent 7” stock buys, reinforcing the view that the stock may still offer upside after its recent pullback. Article: Famous Wall Street Tech Analyst Names Meta and Amazon the Best Magnificent 7 Stock Buys Today
• Positive Sentiment: Meta continues to expand its AI infrastructure, including new computing deals with Crusoe and a strategic data-center partnership in India, which supports the company’s long-term AI capacity and monetization plans. Article: Meta signs new AI computing deals with data center firm Crusoe
• Positive Sentiment: Meta also drew favorable attention for rolling out new AI features for Facebook creators and broader AI tools that could deepen engagement and create new ad products over time. Article: Meta Platforms Rolls Out New AI Features On Facebook For Content Creators
• Neutral Sentiment: Meta continues to get attention for its cloud-computing ambitions, but that move is still viewed as a longer-term optionality story rather than an immediate earnings driver. Article: Meta and Cloud Computing: Real Potential, or a Shot in the Dark?
• Neutral Sentiment: Meta’s strong last reported quarter and upcoming dividend remain supportive, but these are already well known and are not the main catalysts behind today’s trading. Article: META stock and company profile
• Negative Sentiment: Sentiment was hurt by reports that a senior AI executive is leaving Meta during a major AI transition, raising execution concerns at a time when the company is trying to accelerate its artificial intelligence roadmap. Article: Meta head of product for ‘AI for work’ transformation is leaving company
• Negative Sentiment: Meta was also hit by reports that attackers exploited its AI-powered support chatbot to take over high-profile Instagram accounts, adding security and trust concerns around its AI tools and platform controls. Article: Meta faces AI support breach as key internal AI executive exits
• Negative Sentiment: Meta is also facing regulatory and legal pressure, including a Washington high court decision upholding a $35 million campaign finance penalty, which adds to headline risk. Article: Washington high court upholds $35 million campaign finance penalty against Meta

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on META shares. Raymond James Financial upgraded Meta Platforms from an “underperform” rating to an “outperform” rating in a research note on Tuesday, June 2nd. Mizuho decreased their price target on Meta Platforms from $850.00 to $835.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 5th. Stifel Nicolaus lowered their price target on Meta Platforms from $805.00 to $780.00 and set a “buy” rating for the company in a report on Friday, May 1st. Truist Financial dropped their price objective on shares of Meta Platforms from $900.00 to $840.00 and set a “buy” rating for the company in a research note on Thursday, April 30th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $1,015.00 price objective on shares of Meta Platforms in a report on Thursday, May 28th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $840.60.

Meta Platforms Stock Performance

The stock has a 50-day simple moving average of $621.27 and a 200-day simple moving average of $634.15. The company has a debt-to-equity ratio of 0.24, a current ratio of 2.35 and a quick ratio of 2.35. The stock has a market cap of $1.46 trillion, a PE ratio of 20.98, a P/E/G ratio of 1.02 and a beta of 1.23.

Meta Platforms (NASDAQ:META) last announced its quarterly earnings results on Wednesday, April 29th. The social networking company reported $10.44 EPS for the quarter, topping the consensus estimate of $6.67 by $3.77. The company had revenue of $56.31 billion during the quarter, compared to analyst estimates of $55.56 billion. Meta Platforms had a return on equity of 36.93% and a net margin of 32.84%.The firm’s revenue was up 33.1% on a year-over-year basis. During the same period in the prior year, the firm posted $6.43 earnings per share. Equities analysts predict that Meta Platforms, Inc. will post 29.35 earnings per share for the current fiscal year.

Meta Platforms Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Monday, June 15th will be given a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Monday, June 15th. Meta Platforms’s dividend payout ratio is 7.63%.

Insider Buying and Selling at Meta Platforms

In other Meta Platforms news, CFO Susan J. Li sold 9,195 shares of Meta Platforms stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $607.84, for a total transaction of $5,589,088.80. Following the transaction, the chief financial officer directly owned 13,186 shares of the company’s stock, valued at $8,014,978.24. The trade was a 41.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Javier Olivan sold 2,778 shares of the business’s stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $629.45, for a total transaction of $1,748,612.10. Following the sale, the chief operating officer owned 10,557 shares of the company’s stock, valued at approximately $6,645,103.65. This represents a 20.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 40,568 shares of company stock worth $25,057,365. 13.53% of the stock is currently owned by corporate insiders.

Institutional Trading of Meta Platforms

A number of institutional investors have recently added to or reduced their stakes in the business. Westchester Capital Management Inc. acquired a new stake in shares of Meta Platforms in the third quarter valued at about $26,000. RHL Group LLC acquired a new position in Meta Platforms during the 4th quarter worth approximately $28,000. Strategic Wealth Advisors LLC purchased a new position in Meta Platforms in the 4th quarter worth approximately $29,000. Axiom Investment Management LLC purchased a new position in Meta Platforms in the 1st quarter worth approximately $36,000. Finally, Safe Harbor Fiduciary LLC acquired a new stake in Meta Platforms in the fourth quarter valued at approximately $42,000. 79.91% of the stock is owned by hedge funds and other institutional investors.

Meta Platforms Company Profile

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.